This invention relates generally to processing transactions associated with financial transaction card accounts and, more particularly, to network-based methods and systems for managing merchant screening during financial transaction card account processing.
At least some known merchants accept payment for goods and services using more than one type of financial transaction card systems. One type may be a multi-party transaction system where transactions are processed through a multi-party transaction system interchange. Another type may be a private label transaction system where merchants are directly communicatively coupled to a private label issuer for transaction processing. For example, some merchants accept Visa®, MasterCard®, Discover®, and/or American Express® financial transaction cards. Some merchants also accept a private label financial transaction card, such as a Macy's®, Home Depot®, or other retail merchant card. Generally private label transaction systems are closed to transaction data being transmitted on the private label transaction systems that is not associated with a private label transaction. As such, less identification of the merchants and transaction information is required.
To facilitate processing, issuers may find switching their private label portfolio transactions through the multi-party transaction system interchange improves response times and/or cost benefits. Currently, merchants are typically directly connected to the issuers that manage their private label programs and transactions are processed in a closed-loop manner. Because of the closed nature of their current private label processing environment, issuers know that the transactions they receive come from a participating merchant. However, with a multi-party transaction system interchange, issuers need to ensure that a private label transaction is originating at a participating merchant location. Verifying the participating merchant location by the issuer may also be labor intensive and prone to error.